50+ Cost Control Accounts MCQ’s | Cost Accounting (Free Resource)

41. In May, material requisitions were Rs 44,000 (Rs 39,000 of these were direct materials), and raw material purchases were Rs 57,700. The end of month balance in raw materials inventory a/c was Rs 24,300. What was the beginning raw materials inventory a/c balance?
(a) Rs 10,600
(b) Rs 43,000
(c) Rs 72,400
(d) Rs 25,300

42. Overallocated manufacturing overhead results when
(a) production is less than last year
(b) estimated overhead is less than actual overhead
(c) actual overhead is less than allocated overhead
(d) actual overhead is less than expected

43. Determining how much manufacturing overhead is overallocated or underallocated
(a) is done before the period starts
(b) is done during the period
(c) can be done at any time
(d) is done at the end of the period

44. The journal entry to record the use of direct materials on jobs is to debit work in process inventory and credit
(a) raw materials inventory
(b) finished goods inventory
(c) manufacturing overhead
(d) wages payable

45. Cost of goods sold is debited and finished goods inventory is credited for
(a) purchase of goods on account
(b) transfer of goods to the finished goods storeroom
(c) transfer of materials into work in process inventory
(d) the sale of goods to a customer

46. Under which of the following situations is finished goods inventory debited and work in process inventory credited?
(a) Transfer of goods to the finished goods storeroom
(b) Purchase of goods on account
(c) Transfer goods out of the factory
(d) Transfer of material to work in process inventory

47. Under which of the following situations is raw materials inventory credited and work in process inventory debited?
(a) We ship goods to the customer
(b) Material is transferred to the factory
(c) We transfer goods to the storeroom
(d) We purchase goods on account

48. The cost of direct materials used in production is debited to
(a) either manufacturing overhead or work in process
(b) finished goods inventory
(c) work in process
(d) manufacturing overhead

49. The cost of direct labour used in production is recorded as a
(a) debit to work in process
(b) debit to manufacturing overhead
(c) debit to wages expense
(d) debit to wages payable

50. The cost of indirect labour used in the factory is recorded as a
(a) credit to work in process
(b) debit to manufacturing overhead
(c) credit to wages payable
(d) debit to wages expense

Answer: 41)Rs 10,600 42)actual overhead is less than allocated overhead 43)is done at the end of the period 44)raw materials inventory 45)the sale of goods to a customer 46)Transfer of goods to the finished goods storeroom 47)Material is transferred to the factory 48)work in process 49)debit to work in process 50)debit to manufacturing overhead

51. The journal entry needed to record the completion of a job includes a
(a) credit to work in process
(b) credit to finished goods inventory
(c) debit to work in process inventory
(d) debit to cost of goods sold

52. The journal entry needed to record the completion of a job includes a
(a) debit to cost of goods sold
(b) debit to work in process
(c) debit to finished goods inventory
(d) debit to raw materials inventory

53. The journal entry to issue Rs 600 of direct materials and Rs 40 of indirect materials involves a debit to
(a) manufacturing overhead for Rs 640
(b) work in process for Rs 640
(c) work in process for Rs 600 and a credit to manufacturing overhead for Rs 40
(d) work in process for Rs 600 and a debit to manufacturing overhead for Rs 40

54. To record the costs of indirect labour, which of the following would be debited?
(a) Work in process
(b) Manufacturing overhead
(c) Finished goods inventory
(d) Wages payable

55. To record direct labour costs incurred, which of the following would be debited
(a) Finished goods inventory
(b) Manufacturing overhead
(c) Work in process
(d) Wages payable

56. To record the requisition of direct materials, which of the following would be debited?
(a) Finished goods inventory
(b) Work in process
(c) Raw materials inventory
(d) Cost of goods manufactured

57. The journal entry to record Rs 300 of depreciation expense on factory equipment involves a
(a) debit to accumulated depreciation for Rs 300
(b) debit to manufacturing overhead for Rs 300
(c) debit to depreciation expense for Rs 300
(d) credit to manufacturing overhead for Rs 300

58. Actual manufacturing overhead for the period is Rs 20,000 while allocated manufacturing overhead is Rs 18,000. What entry will close the manufacturing overhead balance?
(a) Debit manufacturing overhead and credit work in process for Rs 2,000
(b) Debit manufacturing overhead and credit cost of goods sold for Rs 2,000
(c) Debit cost of goods sold and credit finished goods inventory for Rs 2,000
(d) Debit cost of goods sold and credit manufacturing overhead for Rs 2,000

59. A company has overallocated manufacturing overhead by Rs 1,500. The entry to close manufacturing overhead account would be to
(a) debit manufacturing overhead and credit cost of goods sold for Rs 1,500
(b) debit manufacturing overhead and credit work in process for Rs 1,500
(c) debit cost of goods sold and credit manufacturing overhead for Rs 1,500
(d) debit cost of goods sold and credit finished goods inventory for Rs 15,000

60. The entry to record cost of goods sold includes a credit to
(a) Cost of Goods Sold
(b) Finished Goods Inventory
(c) Sales
(d) Work in Process Inventory

Answer: 51)credit to work in process 52)debit to finished goods inventory 53)work in process for Rs 600 and a debit to manufacturing overhead for Rs 40 54)Manufacturing overhead 55)Work in process 56)Work in process 57)debit to manufacturing overhead for Rs 300 58)Debit cost of goods sold and credit manufacturing overhead for Rs 2,000 59)debit manufacturing overhead and credit cost of goods sold for Rs 1,500 60)Finished Goods Inventory